ATB Investor Services · 2019. 10. 24. · Investor Beat 7 While most Albertans still feel neutral...

ATB Investor Services

To inform business strategy and showcase ATBIS’ deep understanding of Albertans.

1

2

Understand Albertans’ mindset around saving and investing including their intent to save and/or invest based on their confidence in various social, economic and political factors.

Purpose

2

Methodology

3

Field Dates

Wave 3: January 4 – 13, 2016

Wave 2: October 2 - 19, 2015

Wave 1: June 29 – July 13, 2015

In this report “Albertans” = General Population

Online Albertans Aged 18+

Online (Ipsos Panel)

1,004 completes in Wave 3

Qualifying Participants

Ages 18+

Sample collected and weighted to be representative of Albertans by

age, gender and region

Executive Summary –Tracking Results: Investor Beat & Understanding Albertans Deeper

Although most Albertans are moving forward with saving and investing as they normally would, there is a growing number who believe it is a bad time to delve into these activities. This movement may be attributed to the rise in

Albertans’ negative outlook on factors such as the economy, the drop in oil prices and employment prospects. Furthermore, these same issues are likely impacting Albertans ability to remain on track for their financial goals.

• While most Albertans continue to feel neutral towards saving and/or investing wave over wave, there is a significant growth among those who believe it is a bad time (14% in W3 vs. 10% in W2) . The poor economy is a key obstacle to save/invest among this sub-group.

• Negative perceptions of many factors influencing saving/investment intentions significantly increased for a second straight wave. A higher proportion of Albertans are viewing issues such as job opportunities, the economy (Alberta and Canada) and stock market prices to be much worse than 6 months ago.

• Eight-in-ten Albertans anticipate that the climate to save/invest will remain the same 3-6 months from now. This metric is stable wave over wave.

Saving/Investment Intentions of Albertans

Albertans Progress for Personal Financial Goals

Impact of Drop in Oil Prices

• Saving for retirement remains the top financial goal for Albertans (46%) , yet as many also indicated paying down debt (45%) this wave, which is a significant jump from Wave 2. Of note, over half of Albertans are feeling behind on these top 2 financial goals.

• Managing day-to-day finances, short-term savings (e.g. children’s education, vacation, house) and reduced spending round out the top 10 financial goals, and has remained stable throughout the three waves.

• For those feeling behind in their goals, job loss/reduction is significantly up as a barrier to their goals this wave.

• The number of Albertans personally impacted by the drop in oil prices is incrementally increasing over the past 3 waves, with just under half claiming to feel the effects of the decline in the current wave.

• Similar to Wave 2, the increase to the cost of living and the reduction in business are the central issues where Albertans feel they have been impacted by the dropping oil prices. Two-in-ten Albertans are finding it harder to look for employment, a significant jump from the previous wave.

• Reduced spending is the main adjustment Albertans are making due to the lower oil prices.

4

Executive Summary –Ad-Hoc Results: Robo Advisors and Income Taxes

Robo-Advisors are not a financial management tool Albertans are familiar with, nor is there much interest in using this product. There are opportunities for ATB to educate Albertans on, in order to further become a trusted advisor on

finances to Albertans. These include 1) communicating steps that could be useful in obtaining a tax refund, as a quarter of the population is unsure if they will be receiving one and 2) education on tax rates, as half are unfamiliar with

the tax rate changes in 2016 and the taxes placed on their current savings and/or investments line-up.

• Robo-Advisors are not making a big splash among Albertans, with six-in-ten indicating they are not familiar at all with this online financial management product.

• In fact, only one-in-ten would consider using a Robo-Advisor in the future, compared to six-in-ten who would not.

• However, Millennials (18-34 year olds) do show a higher interest, with a quarter indicating they would consider using a Robo-Advisor in the future.

• Among those who have some familiarity with Robo-Advisors, a small proportion has indicated ever using this tool (12% in the past and currently combined).

Robo-Advisors Awareness and Usage

Understanding of Income Taxes (Filing and Refunds)

Understanding & Perception of Income Tax Rates

• Using a tax filing software tool is the most common method to file taxes, followed by using an accountant.

• Over half are anticipating a tax refund this upcoming year, however a quarter do not know if they will.

• If a tax refund would be received, four-in-ten Albertans would put it towards debt payment or into savings and/or investments. This is aligned with their top financial goals.

• One-in-five Albertans are expecting their income tax rates in 2015 to be higher than 2014, primarily due to earning more income. Similarly, among those who are anticipating lower tax rates, this is because of earning less.

• While just under half of Albertans indicate being very/somewhat familiar with the changes to the tax brackets in 2016 and the taxes placed on their saving/investment products, there is opportunity to further educate the other half of the population who are not as aware.

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Investor Beat

Investor Beat

7

While most Albertans still feel neutral towards saving and/or investing this wave, there has been a significant jump among those with a negative outlook (14% in W3 vs. 10% in W2).

Among Albertans who think it is a good time, the poor economy and finding that it is a good time to save are main reasons that have increased for this current wave versus last. For those that feel it is a bad time, the economy is also a key barrier.

Base: All respondents

Q1. Taking everything into consideration, is now a good time or bad time to save and/or invest your money?

Base: Rated [good time/bad time]Q1b. Why do you think now is a good time to save and/or invest?Q1c. Why do you think now is a bad time to save and/or invest?

Significantly higher than previous wave

Significantly lower than previous wave

32%

54%

14%

31%

60%

10%

31%

59%

10%

Wave 3 (n=1,004)

Wave 2 (n=1,024)

Wave 1 (n=994)

Good time (rated 8, 9, 10)

Neutral (rated 3, 4, 5, 6, 7)

Bad time (rated 0, 1, 2)

Good time

Bad time

Only showing mentions 13% or higher

Only showing mentions 11% or higher

This increase in a negative perception is driven by Albertans

35+, Calgary and Edmonton residents, women and those with mass market value of investible

assets ($25K - <$500k).

W2 (n=314) W3 (n=322)

Investment Products (Net) 44% 34%Good time to invest 11% 23%

Low stock market 31% 16%Economy (Net) 25% 31%

Poor/unstable economy 14% 26%Savings (Net) 22% 30%

Good time to save 19% 30%Miscellaneous (Net) 17% 24%

For present/future needs 5% 13%

W2 (n=96) W3 (n=139)

Economy (Net) 28% 47%Poor economy 19% 34%

Unemployment 10% 15%No money (Net) 27% 24%

No extra money to invest 20% 16%No income 3% 11%

Miscellaneous (Net) 22% 27%Investment (Net) 21% 19%

Low interest rates 11% 14%

Investor Beat

8

Eight-in-ten Albertans continue to perceive that saving and/or investment opportunities will remain the same in the next 3 to 6 months, yet there has been a significant lift in the number of Albertans who see it as much worse compared to the previous wave.


Q2. In the next 3-6 months, do you expect it to be a much better or much worse time to save and/or invest your money?



11%

81%

8%

11%

84%

4%

12%

82%

6%

Wave 3 (n=1,004)

Wave 2 (n=1,024)

Wave 1 (n=994)

Much better (rated 8, 9, 10)

Same as now (rated 3, 4, 5, 6, 7)

Much worse (rated 0, 1, 2)

Investor Beat – Economy

9

The downturn in the economy globally and domestically is hitting Albertans’ hard this wave, with increases across the board among those who feel that it is much worse compared to 6 months ago. Of particular concern is the outlook for the Canadian dollar, Canadian and Albertan economy, as Albertans viewing these issues as much worse is trending upwards.


Q3. Compared to 6 months ago, do you think the following factors are much better or much worse?



2%

2%

2%

2%

2%

68%

62%

47%

60%

39%

24%

33%

47%

19%

57%

6%

3%

4%

20%

2%

2%

3%

2%

2%

2%

74%

72%

59%

66%

52%

16%

21%

35%

11%

42%

8%

4%

4%

21%

4%

1%

2%

2%

1%

2%

74%

77%

70%

65%

65%

16%

15%

23%

9%

28%

9%

6%

5%

25%

5%

Global economy

Canadian economy

GDP (Gross Domestic Product)

-22%

-14%

-15%

-31%

-18%

-13%

-45%

-33%

-21%

-17%

-9%

-8%

-55%

-40%

-26%

NET score betweenMuch Better and

Much Worse

Alberta economy

Canadian dollar

Much better(rated 8, 9, 10)

Same as 6 months ago(rated 3, 4, 5, 6, 7)

Much worse(rated 0, 1, 2)

Wave 3 (n=1,004)Don’t knowWave 2 (n=1,024)

Wave 1 (n=994)

Investor Beat – Economy (cont.)

10

A higher proportion of Albertans are feeling that the following economic issues are much worse than 6 months ago: inflation, cost of living, taxes and employment.

The good news is that the perception of healthcare being the same as 6 months ago has remained stable wave over wave.





3%

4%

3%

2%

3%

65%

62%

70%

51%

84%

24%

32%

22%

44%

9%

8%

2%

5%

3%

4%

2%

4%

2%

3%

3%

75%

72%

78%

61%

86%

14%

21%

14%

32%

7%

9%

3%

6%

4%

4%

3%

3%

2%

2%

2%

73%

73%

76%

71%

86%

13%

20%

16%

21%

7%

11%

4%

6%

6%

5%

-21%

-12%

-10%

-28%

-17%

-17%

-19%

-12%

-14%

-42%

-29%

-19%

-6%

-4%

-5%


Much Worse





Wave 1 (n=994)

Taxes

Cost of living

Employment/job opportunities

Healthcare

Inflation

Investor Beat – Saving and Investment Opportunities

11

In line with the negative perception of the economy, savings and investment options are also viewed as being significantly much worse compared to 6 months ago by Albertans. Those with investible assets over $500K and 55+ have a particularly pessimisticoutlook.





5%

4%

3%

4%

2%

3%

74%

70%

39%

61%

58%

54%

13%

20%

54%

26%

26%

14%

8%

6%

3%

9%

13%

29%

5%

4%

3%

3%

2%

2%

78%

76%

51%

69%

62%

57%

9%

13%

41%

18%

21%

11%

8%

7%

5%

10%

15%

30%

4%

4%

2%

3%

2%

2%

77%

76%

62%

71%

69%

58%

7%

10%

30%

14%

11%

8%

12%

10%

6%

12%

18%

32%

Interest rates

Oil market prices

Natural gas market/prices

Stock market

Bond yields

-8%-4%-3%

-16%-9%-6%

-51%-38%-28%

-22%-15%-11%

-24%-19%-9%

-11%

-9%

-6%


Much Worse

Real estate market/prices





Wave 1 (n=994)

Understanding Albertans Deeper


13


Q8. What percentage of your savings and investments are in the following types of products?



Savings and investment products which Albertans have remained stable from the previous wave, as well as the diversity of their savings/investment portfolio.

Similar to last wave, Albertans with investible assets under $100K, Millennials (18-34), Edmonton residents and women are significantly more likely to save/invest in cash products. Long term mutual funds/stocks/bonds are more likely to be used by Albertans 35 or older and those with asset values of $100K.

Have ANY savings or investments

% of Albertans with this product

% of Albertan total savings/investments by

productDon’t have any savings

or investments

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Cash (e.g. savings accounts, money markets and fixed deposits)

84% 83% 82%

79% 78% 76% 44% 45% 44%

16% 17% 18%

Long Term Mutual Funds/Stocks/Bonds 61% 61% 61% 39% 34% 35%

Real Estate (excluding your primary residence) 21% 26% 24% 9% 11% 11%

Alternatives (e.g. precious metals, foreign exchange currency, collectables, derivatives, FOREX, etc.)

18% 21% 21% 3% 4% 4%

Other 17% 20% 20% 6% 6% 7%

For Albertans currently without savings or investments, only one-quarter are likely to start in the next 12 months. This attitude towards savings/investments has remained unchanged over the past three waves.


14

27%

73%

31%

69%

25%

75%

Top 5 Box Low 6 Box

Wave 3 (n=179) Wave 2 (n=173) Wave 1 (n=162)

Base: Don’t have any savings or investments

Q5. How likely are you to start saving and/or investing in the next 12 months? (0-10 pt scale)



Not having the extra funds (68%) for saving or investing and paying off debt (43%) remains the top reasons why Albertans withoutsavings or investments will not likely start.

Reasons for Being Unlikely to Save/Invest

15

68%

43%

25%

16%

15%

14%

12%

65%

33%

19%

16%

11%

10%

11%

62%

33%

17%

11%

12%

12%

18%

Don't have extra money to save/invest

Focus on paying off debt

Priorities are elsewhere right now and you'll think about it later

Don't know where to start

Worried your money would be at risk

Don't know what to save or invest in

Returns are low

Base: Not likely to start saving and/or investing in the next 12 months

Q6. Why are you not likely to start saving and/or investing in the next 12 months?



10%

10%

9%

6%

2%

0%

8%

13%

11%

10%

5%

7%

3%

8%

7%

12%

8%

7%

2%

2%

7%

Wave 3 (n=130)

Wave 2 (n=121)

Wave 1 (n=121)

Don't have time

Fees are too high

Relying on the Canadian pension plan

Relying on a company pension plan

Have other types of investments (i.e. real estate, property, etc.)

Retirement plan includes an expected inheritance

Other

Among Albertans who have savings and/or investments, there are significant increases in stated intent to invest or save for the following products in Wave 3: cash, long term mutual funds/stocks/bonds and alternatives.

Millennials are most likely are intending to increase their savings/investments in all of the investment products measured compared to the middle and older age sets. Albertans with low investible assets (<$25K) would like to focus their future savings into cash products, significantly more so than all other investible asset groups.


16

Base: Have any savings or investments

Q9. In the next 3-6 months do you intend to increase, decrease or keep the same amount of savings and/or investments in each of the following products?



17%

10%

5%

5%

4%

77%

84%

85%

86%

86%

6%

6%

9%

9%

10%

12%

7%

4%

3%

3%

83%

86%

86%

86%

87%

5%

7%

10%

11%

10%

15%

7%

3%

2%

3%

81%

87%

89%

89%

89%

4%

6%

8%

9%

8%

Cash

Long term mutual funds/stocks/bonds

Real estate (excl. your primary residence)

Alternatives

Other

Intent to increase savings/investments (rated 8, 9, 10)

Keep the same amount of savings/investments (rated 3, 4, 5, 6, 7)

Wave 3 (n=825)Intent to decrease savings/investments (rated 0, 1, 2)Wave 2 (n=851)

Wave 1 (n=832)


17


Q13a. In the past 6 months, did the return from your savings and/or investments increase or decrease?

For the second consecutive wave, over four-in-ten Albertans with savings and/or investments say that the return they received in the past 6 months has decreased, reflecting the current economic state.

Significantly more middle-aged (35-54 years) and older Albertans (55+) are indicating their returns have decreased (46% and 56%) versus the younger age group of 18-34 year olds. In addition, Albertans with $100K or more in investible assets are more likely to indicate losses versus those with less than $100K.



38%

44%

19%

37%

43%

20%

49%

29%

22%

Wave 3 (n=825)

Wave 2 (n=851)

Wave 1 (n=832)

Increase

Decrease

Don’t know

Mean (incl. 0) Don’t know

Wave 3 (n=310) 10.7 28%

Wave 2 (n=308) 10.5 30%

Wave 1 (n=406) 8.2 31%

Mean (incl. 0) Don’t know

Wave 3 (n=361) 14.5 30%

Wave 2 (n=365) 13.3 26%

Wave 1 (n=241) 14.1 28%

Base: Savings and/or investments increased in the past 6 months

Q13b. By approximately what percentage did the return from your savings and/or investments increase?

Base: Savings and/or investments decreased in the past 6 months

Q13c. By approximately what percentage did the return from your savings and/or investments decrease?


18

5%

32%

42%

21%

6%

28%

41%

24%

6%

31%

41%

22%


Q10. Which of the following best describes your investment knowledge?Q11. How would you describe your risk tolerance when it comes to savings and investments?Q12. What is more important to you?

Albertans’ investment knowledge have remained stable over the past three waves. While risk tolerance has generally stayed the same in Wave 3, there is a significant decrease in the proportion of Albertans stating they have a low risk tolerance (14% in W3vs. 18% in W2).

Albertans continue to be evenly divided in their opinions when it comes to the importance of growing their money versus not losing their money.



Risk Tolerance Most ImportantInvestment Knowledge

While more women than men consider themselves to be inexperienced for investment knowledge, the

proportion of women rating themselves as inexperienced has declined this wave (26% W3 vs. 35% W2). Thus, females may be seeking out more information on finances in this economic climate.

Excellent

Good

Fair

Inexperienced

5%

21%

37%

24%

14%

6%

19%

32%

24%

18%

6%

21%

33%

24%

16%

High

Medium-High

Medium

Medium-Low

Low

51%

49%

51%

49%

53%

47%

Growing your money

Not losing your money

Wave 3 (n=825)Wave 2 (n=851)Wave 1 (n=832)

Understanding Albertans Deeper – Top 10 Personal Financial Goals

19

46%

45%

44%

39%

39%

38%

25%

21%

20%

18%

51%

38%

41%

36%

35%

32%

22%

21%

19%

18%

49%

42%

40%

36%

38%

30%

22%

20%

18%

16%

Wave 3 (n=1,004)

Wave 2 (n=1,024)

Wave 1 (n=994)

Saving for retirement

Paying down debt

Managing day-to-day finances

Building up an emergency fund

Saving for a vacation

Reducing your spending

Saving money in case of an illness/death in your family

Reducing the amount of tax you pay

Saving for a house

Saving for your children's/grandchildren's education


Q14. Which of the following are financial goals for you personally?



Paying down debt (45%) obtains significant gains in Wave 3 and sits in first place alongside saving for retirement (46%) as the top financial goals for Albertans this wave.

Reduced spending is another financial goal that has increased significantly this wave, driven by 35-54 year olds and those with low value of investible assets (<$25K).

Understanding Albertans Deeper – Other Personal Financial Goals

20

18%

15%

15%

10%

9%

10%

9%

8%

8%

9%

17%

16%

12%

9%

7%

6%

7%

7%

6%

9%

18%

14%

12%

10%

8%

7%

6%

6%

6%

11%

Wave 3 (n=1,004)

Wave 2 (n=1,024)

Wave 1 (n=994)

Saving for a major purchase (e.g. car, TV, boat, RV, etc.)

Making charitable donations

Saving for a house renovation

Accumulating an estate

Saving for your education

Saving for a wedding/honeymoon/baby

Starting or owning a business

Buying proper life insurance coverage

Saving for a second property

Nothing specific, just want to grow my money


Q14. Which of the following are financial goals for you personally?



Additional financial goals which have significantly increase this wave include saving for house renovations and savings towards a wedding/honeymoon or baby.

Millennials are targeting these two short-term financial goals significantly more this wave versus last (renovations: 18% in W3 vs. 11% in W2; wedding/honeymoon/baby 19% in W3 vs. 12% in W2).


21

Base: Financial goals selected

Q15. How do you feel about your progress in achieving your financial goals?

There are no major changes from wave to wave on Albertans perceptions of the progress made on financial goals relating to savings. Albertans are feeling the most positive about (on track or ahead) on savings for their children/grandchildren’s education and vacation.

Over half of Albertans feel that they are behind in their retirement savings. Albertans with investible assets of less than $25K(64%) and between $25-$100K (61%) feel the most unprepared for retirement versus those with over $100K in assets.



Children’s/grandchildren’s education

Your education

Vacation

Retirement

Major purchase (e.g. car, TV)

Wave 3 (n=varies)Wave 2 (n=varies) Ahead (Net) On TrackBehind (Net)Wave 1 (n=varies)

Progress of Achieving Financial Goals – Savings Related

Savings for…

9%

7%

6%

6%

6%

47%

39%

47%

35%

35%

8%

4%

7%

9%

6%

50%

34%

45%

37%

28%

10%

11%

7%

11%

2%

50%

31%

45%

42%

35%

34%

43%

36%

52%

46%

34%

47%

37%

48%

50%

32%

38%

35%

40%

43%

6%

6%

5%

5%

5%

32%

30%

29%

22%

21%

5%

2%

7%

5%

4%

34%

34%

21%

19%

25%

1%

6%

8%

8%

7%

36%

34%

21%

18%

26%

50%

48%

37%

48%

54%

53%

55%

46%

61%

48%

50%

47%

53%

51%

42%


22



Albertans continue to feel that they are behind on their financial goals relating to home focused savings (e.g. renovations, buying a home) and emergency funds.



Money in case of an illness/death in your family

House renovation

Wedding/honeymoon/baby

Second property

House


Savings for…

Progress of Achieving Financial Goals – Savings Related

12%

11%

10%

7%

6%

6%

6%

6%

5%

52%

23%

60%

38%

50%

49%

41%

25%

34%

10%

3%

9%

11%

8%

7%

6%

6%

6%

53%

25%

64%

46%

46%

51%

45%

29%

33%

8%

11%

10%

10%

5%

7%

9%

14%

5%

56%

23%

64%

45%

49%

44%

43%

28%

32%

28%

47%

29%

47%

42%

39%

51%

48%

52%

31%

56%

26%

36%

42%

39%

47%

38%

53%

34%

43%

24%

34%

44%

41%

45%

42%

54%


23



Similar to the previous two waves, Albertans are the most comfortable with the progress (either ahead or on track) on managing their day-to-day finances.

In addition, there has been a surge in the proportion of Albertans who indicate that they are ahead on their goals of buying life insurance coverage (11% in W3 vs. 3% in W2).



Making charitable donations

Buying proper life insurance coverage

Managing day-to-day finances

Accumulating an estate

Reducing your spending

Reducing the amount of tax you pay

Paying down debt

Starting or owning a business

Building up an emergency fund


Progress of Achieving Financial Goals


24

54%

42%

31%

31%

28%

18%

13%

7%

7%

7%

1%

58%

43%

n/a

24%

27%

17%

16%

8%

5%

10%

1%

56%

44%

n/a

22%

30%

16%

17%

7%

7%

7%

3%

Wave 3 (n=653)

Wave 2 (n=627)

Wave 1 (n=593)

Cost of living

Unexpected expenses

Too much spending

Job loss/reduction

Low wages

Low returns

Taking time to make it a priority

Need financial advice/expertise

Wrong savings/investment product

Other

Don't know

Base: Behind in achieving financial goals

Q16. You mentioned you are behind in at least one of your financial goals. What is preventing you from being on track?



Job loss/reduction has increased significantly this wave as a reason that’s preventing Albertans from achieving their financial goals. Millennials (18-34) and Gen-Xers (35-54) are significantly more impacted by job loss/reduction than those 55+.

Cost of living followed by unexpected expenses continue to be the main reasons Albertans indicated as being roadblocks to meeting their financial goals.

Reasons Falling Behind in

Financial Goals

Impact from Drop in Oil Prices

Impact of Drop in Oil Prices

26


Q21. Have you personally been impacted by the recent drop in oil prices?

Base: Impacted by the recent drop in oil prices

Q22. In what ways have you personally been impacted by the recent drop in oil prices?



Similar to the past two waves, under half of Albertans (48%) say they have been personally impacted by the drop in oil prices. While not a significant increase in Wave 3, this measure has been incrementally increasing wave over wave.

Cost of living increases, slow down in business and changes in gas prices continue to be the top 3 factors impacted by the drop in oil prices. Notably, there is a significant increase in regards to difficulty in finding employment versus the last wave (19% vs. 14%) as a result of the dip in oil prices.

Yes

No

48%

52%

45%

55%

42%

58%

Wave 3 (n=1,004)

Wave 2 (n=1,024)

Wave 1 (n=994)

Personally Impacted Ways Impacted

Increased cost of living

Slow down in business

Change in gas price at gas station

Decline in investment value

Job loss

Decline in real estate value

Salary freeze

Can't find employment

Salary reduction

Reducing business expenses

Other

45%

37%

32%

28%

24%

21%

20%

19%

17%

8%

5%

43%

39%

39%

27%

19%

17%

22%

14%

19%

12%

4%

n/a

42%

n/a

n/a

21%

n/a

20%

n/a

13%

11%

25%

Wave 3 (n=485)

Wave 2 (n=467)

Wave 1 (n=413)

Residents of Calgary (53%) are significantly more impacted than other parts of Alberta.

35-54 year olds (56%) are feeling the effects of the drop in oil prices more so than Millennials or 55+.

Reduced spending remains the main adjustment Albertans have made to their lifestyle due to the decrease in oil prices, and has also significantly increased this wave (69% in W3 vs. 61% in W2). More females than males (75% vs. 63%) and individuals with less than $25K in investible assets (77%) have curbed their spending habits this wave.

Ad Hoc Section – Impact of Drop in Oil Prices

27

69%

31%

27%

23%

18%

17%

12%

61%

29%

29%

23%

14%

18%

13%

56%

27%

26%

18%

17%

16%

10%

Reduced your spending

Put off making a big purchase (ie. a car, TV, boat, RV, etc.)

Changed a vacation plan

Stopped some of your regular savings/investment contributions

Withdrew some of your long term savings/investments

Put off a planned home renovation

Put off buying a new house

Base: Impacted by the recent drop in oil prices

Q23. As a result of the recent drop in oil prices, which of the following changes have you made?



Changes Made

9%

9%

8%

8%

4%

4%

10%

10%

8%

6%

5%

1%

2%

17%

7%

5%

5%

3%

2%

4%

20%

Wave 3 (n=485)

Wave 2 (n=467)

Wave 1 (n=413)

Shifted your savings/investments to a more conservative/lower risk

selection

Took out a new loan/started to use an existing line of credit

Planning to leave the province due to instability in the oil sector

Downsized your home to reduce expenses

Remortgaged your home to reduce expenses

Other

None

Ad-hoc Section

Ad Hoc Section: Robo-Advisors

29

Robo-Advisors is a financial service that the majority of Albertans are not aware of, as close to six-in-ten claim to not at all be familiar with this investment management product.

Among Albertans who indicated at least some familiarity with this online tool, none of the Robo-Advisor companies presented garnered high awareness levels.

Awareness of Robo-Advisor CompaniesFamiliarity with Robo-Advisors

Declining38%

3%

15%

24%

57%

Very familiar

Somewhat familiar

Not very familiar

Not at all familiar

9%

8%

8%

8%

7%

1%

73%

Wealthsimple

Invisor

Shareowner

Wealthbar

Nestwealth

Other

None

Familiar43%

Base: All wave 3 respondents (n=1,004)

W3AH12. How familiar are you with online investment management services (sometimes called “robo-advisors”)?

Base: Wave 3 respondents familiar with robo-advisors (n=431)

W3AH15. Please select which of the following online investment management services companies (“robo-advisors”) that you have heard of.

Significantly more Millennials are

very/somewhat familiar (28%) with Robo-Advisors than the older age groups

(35-54, 55+).Males also indicate to be more familiar with this

online tool than females (26% very/somewhat

familiar vs. 11%).

Ad Hoc Section: Robo-Advisor Usage

30

Even among Albertans who have a minor familiarity with Robo-Advisors, only one-in-ten have ever used this product (in the past or currently).

Furthermore, using a Robo-Advisor in the future is low, as six-in-ten Albertans would not consider using this investment management service. Should ATB consider this service in their repertoire, more education and communication for this online tool is needed in order to generate more interest.

Yes in the past5%

Yes currently7%

No84%

Don't know4%

Use of Robo-Advisors(Base: not very- very familiar)

Likelihood to Consider Using Robo-Advisors

Base: Wave 3 respondents familiar (not very – very) with robo-advisors (n=431)

W3AH13. Have you used an online investment management service (“robo-advisor)?

3%

10%

29%

27%

31%

Definitely would consider

Probably would consider

Might or might not consider

Probably would not consider

Definitely would not consider

Would Consider13%

Would Not Consider57%


W3AH14.How likely would you be to consider using an online investment management service (“robo-advisor”) for your savings and/or investments?

Three-quarters of those with investible

assets of $500K+ would not consider using robo-advisors.

One-quarter of 18-34 year olds would

consider using robo-advisors.

Ad Hoc Section: Income Tax

31

Using a software tool to complete their tax returns themselves is the most common method Albertans use to file their taxes, followed by using the services of an accountant. Among those with high investible assets ($500K+), 40% use accountants for filing taxes.

For most Albertans, payment of their federal and provincial taxes is deducted by employers from their pay.


W3AH2. Are you aware that you pay both federal and provincial income taxes on your earned income?W3AH1. Personal Income Tax season is coming up. Typically, who completes your personal income tax return?W3AH3. What payment method do you use to pay federal and provincial income tax?

Federal/Provincial Tax Payment MethodTax Return Completion Method

Declining38%

94% aware federal & provincial

taxes are paid on income

40%

13%

29%

14%

4%

Yourself using a software tool (i.e. turbotax, quicktax, etc.)

Yourself using paper and pencil

Accountant

Your spouse/partner/friend/

other family member

Other

64%

10%

4%

5%

16%

Your employer deducts your income

taxes from your pay

You are self-employed and you pay when you

file your income tax return each year

You are self-employed and you make

installment payments throughout the year

Don’t know

Not applicable

53% complete taxes by

themselves

Ad Hoc Section: Income Tax Refunds

32

Over half of Albertans (52%) are anticipating a tax refund this coming year. Those in the 18-34 or 35-54 age cohorts are more likely to expect refunds, while more older Albertans (55+) expect to make payments.

If a refund is received, paying down debt (38%) or putting it into savings or investments (37%) are the main mentions of whatAlbertans would do with this money.


W3AH9. Do you personally expect to receive a refund or have to make a payment when you file your 2015 Income Tax return?

Expect a refund

52%

Expect to make a

payment24%

Don't know24%

Expected Use of 2015 Refund (If Received)Expectation of 2015 Income Tax Refund

Somewhatstrongly

18%

A higher proportion of Albertans with <$25K in investible assets are unsure if they will be receiving a refund or making a payment

compared to those with more than $25K.

38%

37%

21%

9%

6%

5%

4%

2%

3%

10%

Debt payment

Savings and/or investments

Day-to-day household expenditures

Recreation/entertainment or travel

Household renovations

Education

Personal vehicle

Starting a business or existing business venture

Other

Don`t know


W3AH11. If you receive a refund this year what will you do with the refund money? Put it towards …

22%

38%

13%

27%

61%

35%

6%

1%

2%

5%

Ad Hoc Section: Income Tax

33

One-in-five Albertans are anticipating that their income tax rates will be higher in 2015 vs. 2014 and primarily attribute it totheir higher income earnings, followed by the changes to tax rates. For those who feel their tax rates will be lower in 2015, earning less income and changes to tax rates are the top mentions.

Close to four-in-ten Albertans think they will pay the same amount of income taxes this year compared to 2014; however one-quarter believe there payment will increase.

All wave 3 respondents (n=1,004)

W3AH4. Overall, for you personally, are your 2015 income tax rates (% of your 2015 income that goes to federal and provincial taxes) …W3AH5.Why are your 2015 income tax rates [higher/lower]? Please select all that apply.W3AH10. Do you think you will pay more or less (total $ amount) in personal income taxes on your income from 2015 compared to 2014?

You earned more income

Changes to tax rates/income brackets

Claimed more deductions/credits

Received professional advice on taxes

Other

Don`t know

Higher vs. 2014 (n=216)

Perception of 2015 vs. 2014 Personal Income Tax Rates

Lower vs. 2014 (n=128)

More25%

The same39%

Less19%

Don't know17%

Payment of Personal Income Taxes 2015 vs. 2014

Higher than 2014

The same as 2014

Lower than 2014

Don’t know

65%

26%

10%

3%

5%

5%

You earned less income

Changes to tax rates/income brackets

Claimed more deductions/credits

Received professional advice on taxes

Other

Don`t know

Males, Millennials and middle-aged Albertans (18-34 & 35-54) are more likely to perceive that their 2015 income taxes will be

higher than 2014. Those with lower investible assets (<$25K) have a higher likelihood to not know what

their rates and payments will be like for 2015.

Ad Hoc Section

34

Over four-in-ten Albertans are very/somewhat familiar with both the changes to the 2016 income tax bracket rates and the taxes implemented on saving/investment products.

The majority of Albertans are neutral to tax implications playing a role in selecting their saving/investment products.


W3AH6. How familiar are you with the changes to the income tax bracket rates that the government is introducing in 2016?W3AH7.How familiar are you with how different savings and/or investment products (gains and losses) are taxed?W3AH8.How strongly do tax implications impact which savings and/or investment products you select?

7%

39%32%

22%

Veryfamiliar

Somewhatfamiliar

Not veryfamiliar

Not at allfamiliar

Familiarity with 2016 Changes to Income Tax Bracket Rates

Impact of Tax Implications on Selecting Savings/Investment Products

Familiarity with Taxes on Savings/Investment Products

Very strongly(rated 8, 9, 10)

Neutral(rated 3, 4, 5, 6, 7)

Not at all(rated 0, 1, 2)

14%

62%

24%

More males, Millennials and Older Albertans (55+)

claim to be very/somewhat familiar with the 2016

income tax bracket changes.

8%

36% 33%23%

Veryfamiliar

Somewhatfamiliar

Not veryfamiliar

Not at allfamiliar

46%

44%

Albertans with the highest amount of investible

assets ($500K+) claim to have the highest

familiarity of both the changes to tax bracket

rates and taxes on savings/investment

products compared to all other investible asset

groups.

Demographics

Demographics

36




D1. Please indicate your gender.D2. Which age range do you belong to?D3. In which area of Alberta do you live? D7. Which of the following best describes your total household income?

50% 50%

50% 50%

18 to 34

33%

33%

33%

35 to 54

38%

38%

38%

55+

29%

29%

29%

Edmonton33%34%34%

Calgary36%36%36%

Other Alberta30%30%30%

Household Income

$30K or less 11% 10% 12%

$30K to $50K 13% 15% 15%

$50K to $80K 20% 20% 21%

$80K to $100K 13% 14% 14%

$100K to $150K 17% 16% 16%

$150K to $250K 6% 9% 7%

$250K or more 2% 2% 1%

Prefer not to say 14% 11% 11%

Don’t know 2% 2% 2%

Wave 2 (n=1,024)

Wave 1 (n=994)

Wave 3 (n=1,004)

50% 50%

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ATB Investor Services · 2019. 10. 24. · Investor Beat 7 While most Albertans still feel neutral...

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